Funding for Texas’s public schools comes from three main sources: local property taxes, state funds, and federal funds. The majority of funding for San Angelo ISD comes from state funding and local property taxes.
A school district’s property tax rate consists of a Maintenance and Operations (M&O) tax rate and an Interest & Sinking (I&S) tax rate. These two tax rates are combined to total the school district’s overall tax rate. As its name suggests, the M&O tax rate provides funds for the daily operational costs of a school district. San Angelo has the lowest total tax rate of the 6 school districts having an attendance boundary in the county. The I&S tax rate provides funds for payments on the voter-approved debt that finances a district’s facilities. The total tax rate for San Angelo ISD is $.81231 which is the lowest tax rate in over 20 years.
The SAISD M&O tax rate is $0.7249 and funds the general operations of the District. This part of the tax rate pays for employee salaries, utilities, supplies, gasoline, etc. School districts are a people-intensive business, and most of these funds go toward personnel costs.
The I&S tax rate is $0.08741 and is often called the debt service tax rate. Funds generated from this tax rate go toward paying off the debt generated by the issuance of school bonds. This is similar to the part of a household budget that pays for the home mortgage. School bonds are issued as funds are needed for approved school projects and are generally not issued all at once. Most school bonds are issued or paid for over 25 years. However, the repayment period for short term assets, such as technology items, are paid off much more quickly.